A fatwa issued by Pakistan’s leading Islamic scholar Mufti Taqi Usmani sparked new debate over cryptocurrencies. The ruling declares that trading cryptocurrencies, crypto tokens, and stablecoins is haram under Islamic law, arguing that these digital assets do not meet the Shariah definition of wealth or property.
The fatwa issued under supervision of Darul Uloom Karachi and circulated by scholars affiliated with the institution applies broadly to cryptocurrencies, blockchain-based crypto tokens, and stablecoins. He said cryptocurrencies do not fulfill Islamic definition of wealth or property. On that basis, the fatwa concludes that buying, selling, or trading these digital assets is not permissible from a Shariah perspective.
The ruling stated that cryptocurrencies are not recognized as wealth, regardless of whether they are crypto tokens or stablecoins such as USDT. As a result, transactions involving these assets are considered impermissible.
The fatwa also dismisses distinctions based on terminology, explaining that labels including “cryptocurrency,” “virtual currency,” “token,” and “stablecoin” all refer to the same category of digital assets. It emphasizes that changing the name of an asset does not change its religious status.
It extends beyond well-known cryptocurrencies such as Bitcoin and Ethereum to include blockchain-issued tokens and stablecoins like USDT, treating them all under the same religious principle. The fatwa carries endorsements from several Islamic scholars, reinforcing its standing within the country’s religious community.
The question of whether cryptocurrency trading is halal or haram does not have a simple answer. Islamic scholars remain divided, and both sides present arguments rooted in Shariah principles.
Some scholars believe cryptocurrencies should be considered haram because they involve excessive uncertainty, speculation, and do not qualify as valid wealth under Islamic jurisprudence. Others argue that several cryptocurrencies may be permissible if they are used for legitimate purposes, widely accepted, and traded responsibly rather than for gambling or reckless speculation. However, they still prohibit activities involving interest (riba), fraud, excessive leverage, and market manipulation.
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